Overview:
GBP/JPY is expected to range trade. It is supported by the positive euro sentiment and demand from the Japanese importers and loose BOJ's monetary policy. But GBP/JPY upside is limited by the diminished investor risk appetite and Japan's exports sales. Daily chart is positive-biased as MACD and stochastics are bullish, although latter is at overbought zone, 5- and 15-day moving averages are advancing.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 171.3. A breach of this target will move the pair further downwards to 170.5. The pivot point stands at 172.3. In case the price moves in the opposite direction, bounces back from support level, and then moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 172.90 and the second target at 173.60.
Resistance levels:
172.90
173.60
174.10
Support levels:
171.30
170.50
170
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